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Principal Economist at Policy Research Institute of Bangladesh (PRI) Dr Ashikur Rahman on Thursday said without addressing deep-rooted constraints in energy supply, logistics, and political uncertainty, it will be difficult to unlock new investment opportunities.
“In this context, it is neither accurate nor sufficient to singularly attribute slower growth to a tight monetary stance,” he said.
He said this while delivering the keynote presentation in the unveiling of the June - July edition of its Monthly Macroeconomic Insights (MMI) on Thursday at PRI’s conference room.
“The challenging investment climate has been one of the most serious impediments to economic growth in Bangladesh in recent years,” he said.
The Principal Economist of the PRI mentioned that evidence suggests that unless structural bottlenecks in the real economy are tackled alongside financial policies, Bangladesh cannot meaningfully stimulate investment and sustain growth.
The Centre for Macroeconomic Analysis (CMEA) of the Policy Research Institute of Bangladesh (PRI), in partnership with the Department of Foreign Affairs and Trade (DFAT) of the Australian Government, hosted the June - July edition of its Monthly Macroeconomic Insights (MMI).
Executive Director of PRI and chair of the event Dr Khurshid Alam gave opening remarks, according to a press release.
In his remarks, Dr Alam expressed optimism that, despite various challenges, the Bangladesh economy continues to move in the right direction.
Chief Economist of Bangladesh Bank Dr Akhtar Hossain, speaking as the Chief Guest, said that the central bank is currently working to bring down the inflation rate from 9 percent to 3-4 percent.
“However, simply reducing it is not sufficient; we must formulate a rule-based monetary policy to ensure long-term stability. This will allow us to maintain inflation stable at around 4 percent in the future."
Special guests at the event included Director of PRI Dr Ahmad Ahsan and Second Secretary (Economic) at the Australian High Commission Joshua Gacutan.
Dr Ahsan emphasized that political uncertainty has adversely affected investment and growth, underscoring the need to ensure stability through the upcoming election.
He also drew attention to the rising unemployment crisis, noting that “Nearly 3 million people, most of them women, left employment in 2024. With a large portion of the population deprived of income, poverty has risen nationwide.”
Dr Ahsan expressed hope that the interim government would prioritize addressing these pressing challenges during its tenure.
The distinguished panel featured Former Chairman of the National Board of Revenue (NBR)Dr Nasiruddin Ahmed, President of the Bangladesh Chamber of Industries (BCI) Anwar-Ul-Alam Chowdhury (Parvez), and Senior Vice President of the Metropolitan Chamber of Commerce & Industry (MCCI) Habibullah N Karim.
An open discussion followed, with participants engaging in vibrant exchanges on monetary policy, inflation management, and the digitalization of revenue administration.
The event concluded with closing remarks from Dr Khurshid Alam.